STRATEGIC REFORMS and GROWTH INITIATIVES Nirbhar Bhara… · of agriculture produce to State...
Transcript of STRATEGIC REFORMS and GROWTH INITIATIVES Nirbhar Bhara… · of agriculture produce to State...
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STRATEGIC REFORMS
and
GROWTH INITIATIVES
Department of Economic Affairs,
Ministry of Finance
आत्मनिर्भर र्ारत
Part-2 : Poor, including migrants and farmers
14.05.2020
Government Of India
05-05-2020
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Direct Support to Farmers & Rural
Economy provided post COVID
• 3 crore farmers with agricultural loans of Rs. 4.22
lakhs crore availed the benefit of 3 months loan
moratorium.
• Interest Subvention and Prompt Repayment
Incentive on crop loans, due from 1st March, extended
up to 31st May, 2020
• 25 lakh new Kisan Credit Cards sanctioned with a
loan limit of Rs. 25,000 cr.
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• 63 lakh loans of Rs. 86,600 crore approved in Agriculture between
1.3.2020 to 30.04.2020.
• Refinancing of Rs.29,500 crore provided by NABARD, to
Cooperative Banks & Regional Rural Banks in March,2020.
• Support of Rs. 4,200 crore provided under Rural Infrastructure
Development Fund to States during March, 2020 for rural
infrastructure
• Working capital limit of Rs. 6,700 crore sanctioned for procurement
of agriculture produce to State Government entities since March,
2020
Liquidity Support to Farmers & Rural
Economy provided post COVID
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Support for Migrants and Urban Poor during last 2 months
• Government of India has permitted State Governments to utilise State
Disaster Response Fund (SDRF) for setting up shelter for migrants and
providing them food and water etc.
• Central Government also released Rs 11002 crore of its contribution in
advance to all States on 3rd April, to augment funds in their SDRF.
• Hygienically prepared three meals a day provided for the residents of
Shelters for Urban Homeless (SUH) during the lockdown w.e.f March
28, 2020.
• 12,000 SHGs have produced 3 crore masks and 1.20 lakh litres of
sanitizers. This gave additional employment opportunity to the urban
poor.
• Disbursal of Revolving Fund (RF) to Self Help Groups was on-boarded on
PAiSA Portal in April 2020 on a pilot basis in Gujarat and is now being
rolled out across all the States in May 2020.
• 7,200 new Self Help Groups of urban poor have been formed during
the period starting 15th March, 2020.
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MGNREGS support to returning Migrants
• 14.62 crore person-days of work generated till 13th May 2020
• Actual Expenditure till date is around Rs. 10,000 Cr
• Work offered to 2.33 Crore wage seekers yesterday in 1.87 Lac
Gram Panchayats
• 40-50% more persons enrolled, compared to May last year
• Average wage rate rose to Rs. 202 from Rs. 182 in last FY
• Drive being undertaken to enroll returning migrants
• States/UTs advised to provide works to migrant workers as per the
provisions of the Act
• Planning for continuing MNREGA works in Monsoon as well:
plantations, horticulture, livestock related sheds
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Labour Codes - Benefits for Workers
• Universalization of right of minimum wages and timely payment of
wages to all workers including unorganized workers – presently
minimum wages applicable to only 30% of workers.
• Statutory concept of National Floor Wage introduced: will reduce
regional disparity in minimum wages.
• Fixation of minimum wages simplified, leading to less number of
rates of minimum wages and better compliance.
• Appointment letter for all workers- this will promote formalization.
• Annual Health Check-up for employees.
• Occupational Safety & Health (OSH) Code also applicable to
establishments engaged in work of hazardous nature even with
threshold of less than 10 workers.
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• Definition of inter-state migrant worker modified to include
migrant workers employed directly by the employer, workers
directly coming to destination State of their own besides the
migrant workers employed through a contractor.
• Portability of welfare benefits for migrant workers.
• Extension of ESIC coverage pan-India to all districts and all
establishments employing 10 or more employees as against those
in notified districts/areas only.
• Extension of ESIC coverage to employees working in
establishments with less than 10 employees on voluntary basis.
• Mandatory ESIC coverage through notification by the Central
Government for employees in hazardous industries with less than
10 employees.
Labour Codes - Benefits for Workers
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• Social Security Scheme for Gig workers and Platform workers.
• Re-skilling fund introduced for retrenched employees.
• All occupations opened for women and permitted to work at night with safeguards.
• Provision for Social Security Fund for unorganised workers.
• Gratuity for Fixed Tem Employment - Provision of gratuity on completion of one year service as against 5 years.
Labour Codes - Benefits for Workers
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Measures announced Yesterday A number of measures were announced yesterday for Businesses in general and MSMEs in particular. The
measures which will help all businesses are listed again for your understanding:
• Rs 3 lakh crore Emergency Working Capital Facility for Businesses, including MSMEs
• No Global tenders for Government tenders of upto Rs 200 crore
• Extending EPF Support for business and organised workers for another 3 months for salary months of June,
July and August 2020 - will provide liquidity for workers in MSME and other Businesses
• EPF Contribution reduced for Employers and Employees for 3 months to 10% from 12% for all establishments
for next 3 months for workers not covered by Govt support under PMGKP and its extension – will also help
middle class employees - will provide liquidity for workers in MSME and other Businesses
• Relief to Contractors given by extension of up to six months for completion of contractual obligations,
including in respect of EPC and concession agreements
• Tax relief to business as pending income tax refunds to charitable trusts and non-corporate businesses and
professions to be issued immediately
• Reduction in Rates of ‘Tax Deduction at Source’ and ‘Tax Collected at Source” by 25% for the remaining
period of FY 20-21 and Due Dates for various tax related compliances extended - will benefit all businesses
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Poor, including Migrants and Farmers
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Free Food grain Supply to Migrants for 2 months
• Migrants in various states require food-grain assistance
• Migrants who are neither NFSA or State Card beneficiaries in the state they are stationed will be provided 5 kg of grains per person and 1 kg Chana per family per month for two months
• About 8 crores migrants are expected to benefit.
• Rs. 3500 Crore will be spent on this intervention for 2 months
• Cost will be fully borne by Government of India
• State Governments responsible for implementation, identification of migrants and full distribution and providing detailed guidelines.
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Technology Systems to be used enabling Migrants to access
Public Distribution System (Ration) from any Fair Price
Shop in India by March 2021 - One Nation One Ration Card
• Migrant families are not able to access food in other states.
• This scheme will enable a migrant beneficiary to access Public Distribution System from any Fair Price Shop in the country (Intra-State portability introduced in 20 States)
• Part of the PM’s Technology Driven System Reforms
• 67 crore beneficiaries in 23 states covering 83% of PDS population will be covered by national portability by August, 2020
• 100% National portability will be achieved by March, 2021
• All the States/UTs will complete full FPS automation by March, 2021
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Migrant labour/urban poor face challenges in getting houses at
affordable rent.
Government will launch a scheme under PMAY for migrant
labour/urban poor to provide ease of living at affordable rent by,
i. Converting government funded housing in the cities into
Affordable Rental Housing Complexes (ARHC) under PPP
mode through concessionaire;
ii. Incentivizing manufacturing units, industries, institutions,
associations to develop Affordable Rental Housing Complexes
(ARHC) on their private land and operate; and
iii. Incentivizing State Government Agencies / Central
Government Organizations on the similar lines to develop
Affordable Rental Housing Complexes (ARHC) and operate.
Ministry will issue detailed guidelines.
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Affordable Rental Housing Complexes
(ARHC) for Migrant Workers / Urban Poor
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Rs. 1500 crores Interest Subvention for MUDRA-Shishu Loans
• Small businesses under MUDRA have been disrupted
the most & has also impacted their capacity to pay
EMIs.
• Loan moratorium has already been granted by RBI
• The current portfolio of MUDRA-Shishu loans is ~
Rs 1.62 Lakh crore (Maximum loan amount of 50,000
Rs).
• Government of India will provide Interest subvention
of 2% for prompt payees for a period of 12 months.
• Relief of Rs 1500 cr to MUDRA-Shishu loanees
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Rs 5000 cr Special Credit Facility for
Street Vendors • Adverse impact on the livelihoods of the street vendors due to
COVID-19
• Government will launch a special scheme within a month to facilitate
easy access to credit to street vendors.
• Initial working capital up to Rs. 10,000.
• Digital payments will be incentivized through monetary rewards and
enhanced working capital credit would be made available for good
repayment behavior.
• Will support nearly 50 lakh street vendors
• Will provide liquidity of Rs 5000 crores
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Rs 70,000 crore boost to housing sector and
middle income group through extension of CLSS
• Credit Linked Subsidy Scheme for Middle Income Group
(Annual Income: Rs 6–18 lakhs) was operationalized from
May 2017.
• CLSS was extended up to 31st March 2020
• Scheme has benefitted 3.3 lakh middle class families so far.
• Government will extend the CLSS Scheme up to March
2021.
• 2.5 lakhs middle income families will benefit during 2020-21
• Will lead to Investment of over Rs. 70,000 Crores in housing
• Will create jobs
• Will stimulate demand for steel, cement, transport and other
construction materials.
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Rs 6000 crore employment push using
CAMPA funds • There is need to create job opportunities for our citizens
• Compensatory Afforestation Management & Planning Authority
(CAMPA) set up under Compensatory Afforestation Fund Act, 2016
• Plans worth Rs 6000 crores will be approved shortly.
• Funds to be used by State Governments for-
• Afforestation and plantation works, including in urban areas
• Artificial regeneration, assisted natural regeneration
• Forest management, soil & moisture conservation works
• Forest protection, forest and wildlife related infrastructure development, wildlife
protection and management etc
• Will create job opportunities in urban, semi-urban and rural areas.
• Will create job opportunities for Tribals /Adivasis
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• Inadequate financial resources with Small and Marginal Farmers
• RRBs and Rural Cooperative banks are main source for credit
• NABARD will extend additional refinance support of Rs. 30,000 crore for crop loan requirement of Rural Co-op Banks & RRBs.
• This is over and above Rs 90,000 crore to be provided by NABARD through the normal refinance route during this year
• Front-loaded on-tap facility to 33 State Co-operative banks, 351 District Co-operative banks and 43 RRBs available on tap based on their lending .
• To benefit around 3 crore farmers - mostly small and marginal farmers.
• To meet post harvest (Rabi) & current Kharif requirement in May/June
Rs 30,000 crores Additional Emergency Working
Capital Funding for farmers through NABARD
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Rs 2 lakh crore Concessional credit boost to 2.5
crore farmers through Kisan Credit Cards
• Special drive to be undertaken to provide concessional
credit to PM-KISAN beneficiaries through Kisan Credit
Cards
• Fishermen and Animal Husbandry farmers will also be
included in this drive.
• This will enable such farmers to gain access to institutional
credit at concessional interest rate
• 2.5 crore farmers will be covered and will benefit from
credit flow of about Rs 2 lakh crores
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Thank You